A panel formed by RBI governor Raghuram Rajan has suggested switching to consumer prices from wholesale prices in setting its inflation target and making monetary policy.

A panel formed by Reserve Bank of India (RBI) governor Raghuram Rajan has suggested that the central bank focus primarily on managing inflation, switching to consumer prices from wholesale prices in setting its inflation target and making monetary policy.

RBI’s original mandate has been to ensure price stability while keeping an eye on growth. The panel, headed by RBI deputy governor Urjit Patel, said in its report, unveiled on Tuesday, that the nominal anchor of monetary policy should be inflation based on the consumer price index (CPI).